Lovegroves LLP

We have a track record of effective debt collection. When a debt is settled swiftly following a demand, our initial fee of £80 plus VAT is all you will pay. Each case is assessed independently and our advice is functional and cost-effective. Our fees are based on the amount of work undertaken and, unlike recovery agencies, our fees are not conditional on success.

Step 1 – Demand

We are pleased to accept instructions by telephone, fax or e-mail and you are welcome to meet us to discuss an outstanding debt. It is helpful for us to see evidence of the debt.

Our initial procedure is to send the debtor a demand for payment within 7 days. The cost is minimal and you would have no additional commitments. Debts are usually paid following receipt of such demand.

Negotiating Settlement
When debts are disputed, negotiating settlements is usually more sensible than applying to issue Court proceedings, particularly when you intend to preserve a working relationship with the debtor. If there may be difficulty convincing a Court that a debt is valid we would also propose this course.

Step 2 – Court Proceedings

If a debtor ignores a demand or refuses to settle, then you may instruct us to issue proceedings in Court. Generally, the Court will process a claim within 10 days and the debtor will then be required to respond within 14 days.

Undisputed Cases
The Court will enter judgment against a debtor who acknowledges that a claim is valid, or who fails to respond in time. In either case, the debtor is usually liable for the total debt, plus accrued interest, and the fixed costs incurred by you.

If an out of Court settlement is reached after Court proceedings have been issued, it is usual for the debtor to pay your legal costs and interest, in addition to the debt.

Disputed Cases
It is not sensible for a debtor to contest a claim that can be proven, as they will simply increase their costs, but debtors sometimes believe they have valid grounds for withholding payment.

In disputing a claim, a debtor may also issue a counterclaim. You may then continue the Court proceedings, attempt to negotiate a settlement, or discontinue the claim. Note that discontinuance at this stage could be costly if your claim, or any counterclaim by the debtor, exceeds £5,000 as the Court would require you to pay costs incurred by the debtor. Additionally, the debtor would still be entitled to pursue any counterclaim.

Cases that cannot be settled out of Court are passed to our Dispute Resolution & Litigation department, who have significant experience and skill in handling complicated and aggressive litigation.

Step 3 – Enforcement

If a debtor fails to pay following a Judgment, we can recover payment through appropriate enforcement action. For instance, we may appoint a Bailiff to collect a debt on your behalf. Where this method of enforcement would be ineffective, we might suggest that a bankruptcy petition be presented against the debtor, or recommend applying to Court to secure a debt on land owned by the debtor. Our costs start from £80 plus VAT plus Court Fees.

Please contact us for information about costs for commencing Insolvency proceedings.

Costs

DEMAND - A flat fee of £80 plus VAT. There are no other charges at this point.

NEGOTIATING SETTLEMENT - From £110 to £190 plus VAT per hour – rates vary according to the complexity of the case and the seniority of the solicitor assigned.

ISSUING COURT PROCEEDINGS - Fees (including the Court Fee) will generally be added to the claim and are recoverable. Our fees, other than the appropriate fixed fee on issuing the claim, are calculated on a time-costed basis, from £110 to £190 (plus VAT plus Disbursements) per hour – rates vary according to the complexity of the dispute and the seniority of the solicitor.

To use our Debt Collection Service, please contactKhizar Arif by telephone on 01753 851 133 or email karif@lovegrovesllp.com.

Step 1 – Demand

Step 2 – Court Proceedings

Step 3 – Enforcement

Costs

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